Country Perspectives : Opportunities and Challenges for International Voluntary Carbon Markets in the Context of the Paris Agreement
The Paris Agreement, with its universal requirement on all countries to submit nationally determined contributions (NDCs), marks a significant change for the framework of international cooperation through carbon markets. With all countries committi...
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| Language: | English |
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World Bank, Washington, DC
2021
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| Online Access: | http://documents.worldbank.org/curated/en/863921619677611679/Country-Perspectives-Opportunities-and-Challenges-for-International-Voluntary-Carbon-Markets-in-the-Context-of-the-Paris-Agreement http://hdl.handle.net/10986/35538 |
| Summary: | The Paris Agreement, with its universal
requirement on all countries to submit nationally determined
contributions (NDCs), marks a significant change for the
framework of international cooperation through carbon
markets. With all countries committing themselves to climate
action to reduce emissions and achieve their NDCs, the
ability to exert exclusive claims over the emission impact
from carbon market investments and count them towards
emission targets is becoming increasingly complicated. This
study seeks to understand perspectives of potential host
countries on the role international voluntary carbon markets
might play in the context of their NDCs and the Paris
Agreement. In doing so, it explores emerging issues and
challenges these markets may face and clarifies key aspects
host country governments may need to consider in relation to
their market participation. The study takes voluntary carbon
markets to refer to carbon market transactions that are
undertaken by entities on a voluntary basis and not as a
result of any policy-related regulatory requirements. Recent
years have already seen traditional distinctions between
voluntary and regulatory markets break down as standards
bodies and the push for environmental and social co-benefits
begin to cross the old boundaries. And increasingly,
companies are adopting net-zero emission targets, which has
been accompanied by a surge of interest and investment in
the voluntary carbon market. Indications are that voluntary
action and voluntary demand for credits is on an upward
trajectory and expected to witness substantial growth in the
coming years. A greater understanding of host countries’
roles in international voluntary carbon markets, aligned
with the Paris Agreement, will help to build on this momentum. |
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